Moody’s raises KBR

Moody’s Investors Service said it upgraded its ratings of KBR, Inc. raising the corporate family rating to Ba3 from B1, the probability of default rating to Ba3-PD from B1-PD, the first-lien senior secured to Ba2 from Ba3 and the speculative grade liquidity rating to SGL-2 from SGL-3.

“The upgrades reflect Moody’s expectation of sustained backlog and improving free cash flow generation as the risk of joint ventures requiring significant capital infusions has diminished following the completion of the Ichthys LNG project. Moody’s also anticipates that the pace and scale of acquisitive growth of the defense services business could slow given the company’s recent success in growing this business line organically,” said Moody’s Bruce Herskovics, lead analyst, in a press release.

The outlook is stable.

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